LONDON, April 23 (Reuters) - Eurozone government bond

yields fell slightly on Tuesday as traders increased bets on

rate cuts from the European Central Bank, while eyes turned to

Purchasing Managers' Index data for hints on how fast rates may

fall.

ECB officials are sticking to plans to begin lowering

interest rates from their record high in June, with markets now

pricing in around 78 basis points (bps) of easing this year, or

around three quarter-point cuts.

Germany's 10-year bond yield, the benchmark for

the euro zone bloc, was last down 1.5 bps at 2.47%.

Italy's 10-year yield was lower by 2.5 bps at

3.80%, and the gap between Italian and German bunds

narrowed by 1 bp to 130 bps.

Germany's two-year bond yield, which is more

sensitive to ECB rate expectations, was down 1.5 bps at 2.96%.